Akiba Leisman, President and CEO of Mako Mining (TSX.V:MKO – OTCQX:MAKOF), joins me to review the key transaction news out today on December 31^st,  where the Company announced entering into of a non-binding letter of intent to acquire 100% of the issued and outstanding common shares of EG Acquisition LLC (“EGA”), a recently created private corporation controlled by Mako’s controlling shareholder, Wexford Capital LP, established solely to acquire the Moss gold mine located in the historic Oatman District in Arizona.

EGA completed the acquisition of the Moss gold mine on December 31st, 2024 through its acquisition of 100% of the common shares of Golden Vertex Corp. (“GVC”) which holds direct ownership of the Moss gold mine. Each of EGA and GVC will become wholly owned subsidiaries of Mako as a result of the Proposed Transaction. The purchase price for the Proposed Transaction is expected to be in the range of US$ 4.9 million up to US$ 6.4 million if certain royalties are extinguished, all payable in cash. The Proposed Transaction is expected to close by February 2025.

We review the Company strategy behind this acquisition, which will allow Mako to add another producing asset located in a top tier jurisdiction of Arizona, funded solely out of cash flow generated from the last quarter of Mako’s current mining operations. Akiba points out that the Moss mine has been producing gold throughout the Bankruptcy Process through its beneficiation facilities, and that mining was temporarily suspended at the beginning of the Bankruptcy Process.   Mako Mining plans to restart mining operations upon completion of the Proposed Transaction, once it has had an opportunity to optimize the mine plan and debottleneck the crushing plant. This is expected to be achieved within a few months of closing of the Proposed Transaction.

Next, we focused on the economic efficiencies with the elimination of over US$ 60 million of existing liabilities associated with the mine,  the removal of the silver stream, and also discussed the status and 2 paths forward for the remaining royalties in place. Additionally, the base purchase price of US$ 4.9 million, can be further reduced by US$ 1.5 million through the release of certain collateral.   Akiba reiterates that this acquisition is a testament to the knowledge base of their management team, the distressed investing expertise of the controlling shareholder Wexford, and the powerful platform Mako has built to continue making accretive acquisitions.

Wrapping up Akiba highlights that the when the Moss Mine has been debottlenecked and is producing at the grade and rate they believe is possible that it could almost double their current production profile. Mako currently operates the high-grade San Albino Mine in northern Nicaragua and owns the Eagle Mountain project in Guyana. Akiba points out that with a producing mine in the United States that this should expand their future options for funding the development of the Eagle Mountain project. Over the last quarter, even after an extensive drill program at both properties, the cash and gold in sales receivables balance in Mako has increased by over US$ 6 million to nearly US$ 13 million at year end.

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